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If a firm has a degree of operating leverage (DOL) that is greater than 1.0, then it means that a 1.0 percent change in _____
If a firm has a degree of operating leverage (DOL) that is greater than 1.0, then it means that a 1.0 percent change in _____ will cause a change in earnings before interest and taxes (EBIT) that is _____ 1.0 percent.
a. | earnings per share; greater than | |
b. | fixed costs; less than | |
c. | net income; greater than | |
d. | sales; greater than | |
e. | net operating income; less than |
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